These questions should be answered using your own words in accordance with your understanding of the textbook (The Essentials of Risk Management, 2nd edition. by Crouhy, M., Galai, D., & Mark, R. McGraw-Hill, 2013) readings. The assignment rubric will be used to evaluate your answers. Answers should generally be one-two paragraphs of information and analysis per question.
Chapters 1 & 2
- What is risk?
- What is the difference between market risk and credit risk?
- What is a risk manager's main job responsibilities?
- What is systematic risk?
- What are some logical arguments for managing risk?
- What is hedging?
- How did MGRM's risk management strategy go wrong?
- Why is there a need for performance evaluation?